Baton Rouge - The state is not giving up on getting the full $492 million replacement cost for New Orleans' Charity Hospital. FEMA has already denied one appeal, but the state plans to submit another one. In May, FEMA's regional office indicated the state had not proved its case that the building was more than 50% damaged. FEMA instead offered just $126 million for building costs.
Today, Louisiana Recovery Authority's Executive Director Paul Rainwater issued a statement regarding yet another appeal for the hospital's full replacement cost.
"Today, the Office of Facility Planning and Control formally submitted its second appeal for the full replacement cost, $492 million, of Charity Hospital in New Orleans to the Governor's Office of Homeland Security and Emergency Preparedness. This represents a crucial next step in the process. GOHSEP will review the appeal before it is submitted to FEMA. Though we have 60 days to do this, we hope that FEMA and the Department of Homeland Security will finally formalize rules for the arbitration process, which Congress created many months ago, well before this time frame is up, giving us the option to choose between a traditional appeal and arbitration. State officials worked closely with our congressional delegation to create this option that would serve as an independent process to review long-standing disputes between FEMA and Public Assistance applicants still struggling to rebuild after Hurricane Katrina.
"For years, the state and FEMA have debated the merits of this project, and the state has presented three studies that show the damage to Charity Hospital exceeds 50 percent, which under federal law means that the fair action is for FEMA to award Louisiana $492 million. The level of damage and the replacement cost of the hospital are the central issues of this appeal, rather than the future location and governance of the hospital.
"This project will be a shot in the arm for New Orleans recovery from Hurricane Katrina and will ensure world-class health care and medical training for the region. Should the arbitration panel never materialize, the state will submit its appeal directly to FEMA Administrator Craig Fugate and exercise our right to argue an oral appeal before FEMA, which is something the state fought for, and won, last year."
